Alex Saab, a close ally of Venezuelan President Nicolás Maduro, pleaded guilty Tuesday in federal court to a single count of money laundering. The charge is tied to an alleged bribery conspiracy aimed at securing lucrative government contracts in Venezuela.
As part of his plea agreement, Saab will cooperate with ongoing federal investigations and forfeit $195 million in criminal proceeds stemming from the corruption scheme. The money laundering offense carries a maximum penalty of 20 years in prison. Prosecutors have agreed to recommend a sentence at the lower end of the sentencing guidelines and may seek further reductions based on the value of Saab's cooperation, which could include testimony against four unnamed co-defendants.
Saab, 54, was deported from Venezuela to the U.S. in May by Acting President Delcy Rodriguez. U.S. authorities have been targeting the Colombian-born businessman for over a decade. He was initially charged during the Trump administration in 2019. His arrest occurred during a refueling stop in Cape Verde, an event the Venezuelan government characterized as part of a humanitarian mission to Iran.
In court, Saab informed Judge Kathleen Williams that he is taking medication for post-traumatic stress disorder, which he attributes to his 2020 arrest.
President Joe Biden pardoned Saab in 2023 in exchange for the release of several Americans imprisoned in Venezuela. This deal, part of an unsuccessful effort by the Biden administration to encourage free presidential elections in Venezuela, drew sharp criticism from Republicans and federal law enforcement officials. Following the pardon, investigators began looking into other alleged crimes involving Saab not covered by the pardon.
U.S. officials have long identified Saab as Maduro's "bag man." He could potentially serve as a character witness against Maduro, who faces drug charges in Manhattan following his apprehension by the U.S. military in January.
Saab's plea comes as U.S. relations with Venezuela are being re-evaluated, with a focus on accessing the country's significant oil reserves. The indictment accuses Saab and others of establishing a network of companies to bribe Venezuelan officials involved in the CLAP program. This program, created by Maduro, provides essential food items to impoverished Venezuelans amid hyperinflation and a collapsing currency.
According to the criminal complaint, Saab allegedly facilitated the creation of shell companies, falsified shipping records, and skimmed funds from government contracts for importing food from Colombia and Mexico. The conspirators also allegedly accessed billions of dollars from the state-run oil company PDVSA.